Boost ETP has listed five new FTSE products in its range of equity short and leveraged ETPs, bringing the total number of equity ETPs to 17.
Boost listed its first set of S&L products, the first issuer to focus on 3x short and 3x leveraged ETPs, in December 2012.
Demand for transparent S&L ETPs has increased over the past few years with global S&L ETP assets rising to just under USD50bn, as many financial markets have trended sideways, resulting in volatile but poor long term returns.
Boost’s new S&L ETPs tracking FTSE indices are:
Boost FTSE 250 1x Short Daily ETP (1MCS)
Boost FTSE 250 2x Leverage Daily ETP (2MCL)
Boost FTSE 100 2x Leverage Daily ETP (2UKL)
Boost FTSE 100 2x Short Daily ETP (2UKS)
Boost FTSE 100 1x Short Daily ETP (SUK1)
Boost ETP is the first issuer in the world to list FTSE 250 S&L ETPs, which will complement Boost’s offering of S&L ETPs tracking the FTSE 100. Investors will now be able to trade UK large-cap or mid-cap on a short and leveraged basis in one simple trade.
Boost’s three new S&L FTSE 100 ETPs will provide -1x, -2x and +2x exposures to the daily change in the FTSE 100 Index. The three new FTSE 100 products all have expense ratios significantly less than similar ETPs already available on the LSE. The current FTSE 100 products equate to approximately 80 per cent of trading volumes for Boost.
Hector McNeil (pictured), co-chief executive of Boost ETP, says: “Boost is continuing to lead the development of the European S&L market. The addition of the unique FTSE 250 ETPs and providing the most comprehensive platform of FTSE 100 S&L ETPs will add significant value to the UK investor community. This is especially the case when we see other European issuers consolidating their offerings, We are also continuing to build up our educational offering on boostetp.com where we have added significant ETF and ETP tools and educational aid; most notably the ‘Adviser/Investor Tool Kit’.”
These new products will be continue to be supported by Boost’s designated market maker, KCG, formally known as GETCO.
Aidan Hsu, ETF trader at KCG, says: “KCG is delighted to build on our partnerships with BOOST and the LSE to provide liquidity to these new and exciting products on this leading global venue. As the current market makers for all the existing Boost ETPs and the market maker on the LSE, KCG will also facilitate OTC trades for counterparties and clients. We look forward to expanding our role as we combine our advanced technology with exceptional client service to offer unparalleled efficiency, liquidity and connectivity across multiple asset classes globally.”
Sudir Raju, managing director, ETP relationships at FTSE, says: “The FTSE Short and Leveraged indices are ideal for use in ETPs due to their highly transparent, rules based methodologies. We are delighted to be extending our relationship with Boost through the use of further FTSE indices in their new ETPs.”
